“I think we’re really riding the bullish earnings momentum.” – 01:09
Remy welcomes Larry Tentarelli, the Chief Technical Strategist and Founder of the Blue Chip Daily Trend Report. As they approach the holiday weekend, they discuss the recent performance of the stock market, particularly the S&P 500, which has not only reached a record high but has also surpassed the 6500 level. Larry notes that this impressive climb took just 196 trading days to gain 500 points, especially significant given that the S&P 500 had dipped below 5000 earlier in the year.
Larry attributes much of the bullish momentum to strong earnings reports, particularly from companies in the AI sector, such as Snowflake. He explains that the anticipated negative impacts of tariff inflation on the market have not materialized as expected, leading to a rally fueled by better-than-expected news.
The conversation shifts to the implications of Fed Chair Jay Powell’s recent dovish statements from the Jackson Hole meeting, which have raised expectations for a potential rate cut in September. Larry expresses optimism about the sustainability of the current market rotation into sectors that typically benefit from lower interest rates, such as home builders, regional banks, and small-cap stocks.